AMES, Iowa -- With the April 15 tax deadline just a month away, an Iowa
State University accounting professor says last-minute filers can still find
tax savings. But his best tip this year is simply to make sure you file on
time to receive full benefit from the government's recently-announced tax
rebate.

ISU Associate Professor of Accounting Bill Dilla oversees the campus IRS
Volunteer Income Tax Assistance (VITA) program. He says that most taxpayers
don't even have to worry about whether they qualify for the economic
stimulus rebate. The Internal Revenue Service will figure eligibility and
amounts in most cases, and begin sending payments to an estimated 130
million people in May.

"If you're unsure about whether you qualify after you look at the IRS
materials (http://www.irs.gov/), it's still better to file
your return," said Dilla. "Even if you have a zero tax balance, you may
still qualify for it if you have earned income. Some may be underneath the
income threshold that requires them to file a tax return, but they still
might have enough to get the credit."

Even if this wasn't a rebate year, Dilla says it's always best to beat
the April 15 deadline -- especially for those who can't afford to pay their
taxes at that time.

"If you owe tax liability and you think you'll be unable to pay, you
should still file your return by the deadline and then contact the IRS,
because they will work out a payment plan with you," he said. "It's better
to work out a plan with them rather than just throw in the towel and not
pay, because if you don't file, there are serious consequences as far as
penalties go."

Dilla reports that there are also benefits to e-filing. For those
receiving a refund, e-filing saves the IRS a step and hastens the process of
receiving payment. And for those who owe, they can electronically defer
having money withdrawn until April 15.

But for those who insist on paper, Dilla says they can still save time
and money by using one of the numerous income tax software packages. The
software programs help taxpayers automatically find some deductions the they
may have previously missed.

Of course, trained tax professionals, like Dilla, also can help find some
last-minute tax savings. Here are some of his top tips for last-minute
filers:

Education expense credits. "If you're not claimed by someone as a
dependent and you've got some post-secondary education expenses, you may
qualify to deduct them," he said. "For a lot of people in the first two
years of college, it's the Hope Education Credit. For others, it's the
Lifetime Learning Credit."

Child care tax credit. "If your children are under a certain age
and you're paying for child care in order to work, this is an important
credit," Dilla said.

Low-income child tax credit. "That is a credit for being
low-income and having children, and it doesn't depend on child care or
anything else like that," Dilla said.

For low-income taxpayers, the Earned Income Credit (EIC). "The
important difference with this credit is that it's a refundable credit," he
said. "So if you owe money on your taxes, but you have a larger earned
income credit, you'll receive money back from the government. Any low-income
taxpayer can qualify for EIC, although having dependents does mean that you
can have more income and qualify."

Energy tax credits. "If you replace an old, inefficient furnace,
or you get new windows, you may be eligible for an energy credit," said
Dilla. "It may be a small amount, like 10 percent of what you spent, but it
comes off the bottom line of your taxes."

Making IRA contributions to save on tax liability. "If you are
below a certain income threshold, you can still contribute to your standard
IRA up to April 15 and get a tax deduction for 2007," he said.

Dilla also encourages taxpayers to receive free live assistance from VITA
volunteers, like the accounting students he supervises at ISU. They're
available on Tuesdays from 3 to 5 p.m., and Wednesdays and Thursdays from 6
to 8 p.m. in room 2148 of the Gerdin Business Building. They'll be there
through Thursday, April 10, except during ISU's spring break from March
17-21.

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Quick look

ISU Associate Professor of Accounting Bill Dilla offers tax savings for
last-minute filers. Dilla oversees the campus IRS
Volunteer Income Tax Assistance program, which is available to provide
assistance on Tuesdays from 3 to 5 p.m., and Wednesdays and Thursdays from 6 to 8 p.m. in room 2148 of the
Gerdin Business Building. They'll be there through Thursday, April 10, except during ISU's spring break from March 17-21.

Quote

"If you owe tax liability and you think you'll be unable to pay, you should
still file your return by the deadline and then contact the IRS, because
they will work out a payment plan with you. It's better to work
out a plan with them rather than just throw in the towel and not pay,
because if you don't file, there are serious consequences as far as
penalties go."